While growing a business, sooner or later entrepreneurs come to the point to ask themselves: Where do I find money to bring my company to a new level? The funding alternatives are many – from bootstrapping through crowdfunding to reaching out to angel investors and VCs – it all depends on your company needs and what percent of the business you are willing to give up.
Raising money is tough no matter what option you decide to pursue. Many entrepreneurs find it uncomfortable. This is why they need to remember that asking for money when you are in the entrepreneurship scene is something normal. You don’t have to feel fear or discomfort. Raising money is a natural part of doing business, so get comfortable with the idea before you even need to begin.
Shortage of money is not the problem: you need to ask for it!
If you believe that your product is worth buying, investing in or pursuing, in general, it is more likely the investors will believe it as well. Not all the investors you meet, of course, but it is enough to find the right ones. Investors are looking for investing opportunities always. If you give them something they see potential in, they will jump on the bandwagon. Remember, there is never a shortage of money when there is an opportunity for profit.
One step at a time: set realistic goals!
When fundraising, many entrepreneurs focus on the short run and forget to look at the bigger picture. Asking for more money than you need or putting your company out with high valuation can easily backfire. To avoid being put in an uncomfortable situation, make sure that you know your numbers well when you pitch investors. Go one step at a time and set realistic goals – you will save yourselves a lot of time and stress if you do so.
Beat the odds: meeting the right person at the right time!
Choosing an investor for your company is something that you should take very seriously. There are things you can do to increase the odds of meeting with the right investor – do your research, find the perfect match by studying the investment portfolios of the investors you have in mind and make the first step.
Attend networking events you know the investors you want to attract to your business will be attending. Don’t leave the future of your company in the hands of the faith – beat he odds. Meeting the right person at the right time can make or break your business, so don’t leave it in the hands of fortuity. Make it happen!